All Forum Posts by: James Thompson

Morning all,

Just looking for thoughts on where to go next. I just purchased two duplexes in Lynchburg, VA with conventional mortgages and a HELOC (primary res) for the down payments. I'd like to continue to leverage if possible and avoid shelling our any additional cash/personal funds. Has anyone found themselves in a similar situation, and if so, how did you move forward in your growth?

Thanks!

Welcome Evan. I'm active duty and work in DC. I've been gauging interest in a local military focused REIA over the last few weeks, and it sounds like we would have some folks willing to meet. If you're interested, let me know, and I'll add you to the list.

James

Morning everyone. I'm considering getting a HELOC on our primary residence here in Northern VA to use as a quick funding source should an opportunity present itself in areas where I'm searching for rental properties (Lynchburg and Norfolk, VA areas). My question to those of you who have used HELOCs is when do you actually have to make payments, and at what rate? I see there is a draw period and a payment period, generally ranging in years from 10-20, but I'm curious what payments you are required to make during those periods. My understanding is that regardless if you are in the draw or payment period, if you utilize the HELOC, you start making payments with whatever current interest rate you were given (currently seems to be a variable between 5-5.5% and subject to US prime rate). If you aren't using the funds, you may be subject to a monthly or yearly inactivity fee during the draw period.

Additionally, if you sell your primary home while you still have a HELOC in place, do lenders typically allow you to pay the HELOC at closing, or do they require that to be settled ahead of time (possibly impacting your ability to sell if you don't have the cash to pay off the HELOC amount)?

Thanks,

James